New bank launches in South Africa

A new bank is set to put the cat among the pigeons. It was announced this week that TymeDigital has been issued an operating licence by the South African Reserve Bank by Commonwealth Bank SA.

TymeDigital by Commonwealth Bank SA receives a banking licence.

This is the first licence issued to a new bank by the SARB since 1999. The licence is scheduled to be published in the Government Gazette on Friday 29 September 2017. Commonwealth Bank of Australia (CBA) Group CEO, Ian Narev, says: “This is an important milestone for CBA. We believe that we have an opportunity to contribute to the financial wellbeing of South Africans, through a business model that uses the potential of new technologies to make life better for customers. We aim to build a sustainable business in South Africa, and to work in an open and cooperative way with the SARB and other relevant regulators. We also hope to see TymeDigital become a source of broader research and development for CBA.

TymeDigital by Commonwealth Bank SA CEO, Sandile Shabalala, adds: “This is a key milestone in our plans to launch a full service digital bank and disrupt banking in South Africa. We will offer South Africans the ability to open accounts and transact securely, within minutes. Through our innovative technology and financial education we aim to get more people using banking services to enhance their lives and increase economic participation.”

TymeDigital is part of CBA’s International Financial Services (IFS) division. CBA acquired TYME (Take Your Money Everywhere), a South African fintech company, in January 2015. CBA is a major Australian financial institution. Its vision is to excel at securing and enhancing the financial wellbeing of people, businesses and communities.

TymeDigital by Commonwealth Bank SA will provide competitively priced, accessible banking services through a growing network of partners. The bank already operates Money Transfer, in partnership with Pick n Pay (PnP) and Boxer stores.

Pick n Pay Deputy CEO, Richard van Rensburg, says: “We have set up a partnership with TymeDigital by Commonwealth Bank SA because we share a commitment to giving customers better value and more convenient banking services, together with simple, clear and accurate financial information so they can make the best use of them. We believe the market is ready for a new bank which will offer consumers better value and more competition.”